I Invested in an ICO, but the Tokens Are Not Listed on Exchanges. What to Do?

Why Invest in ICOs?

The cryptocurrency trend is gaining increased mainstream attention, raising more than $800 billion in 2018. Due to the existence of ICO projects, it has become possible to invest in startup ideas and profit when a project reaches its goals and delivers a final product or service. People are highly interested in ICO investments, as they can:

• increase their investment value at the end of a campaign
• take part in project development
• get different bonuses and rewards
• have the ability to use a new product, the development of which they are supporting

Other appealing ICO features include:

• anyone can contribute to the project and purchase an initial coin or token
• the ICO process is not regulated by centralized authorities
• it is much faster compared with other investment schemes, and therefore promises quick profits

Besides delivering a final offer, the ICO’s main goal is to deliver a coin or token (initially purchased by investors) to the cryptocurrency market and enable investors to sell, trade, or exchange it after the ICO ends. Cryptocurrency tokens aren’t just a means of investment; they have multiple purposes, and can be used for participation in crowdsales and investment in different projects. Tokens can also allow investors to take part in project development and conduct exchanges, make deposits/payments, etc.

If the ICO campaign runs successfully, it raises the required amount of funds, and hence, is able to develop its product or service according to the set milestones. The success of the ICO or post-ICO period depends upon the token liquidity: how quickly it can become accessible to token-holders in order to trade/sell/exchange.

In general, if a company’s token is strong, unique, is in real demand, and isn’t meant for illegal purposes, there shouldn’t be any problems getting it listed on major exchanges.

It is still common, however, for some tokens to miss out on exchanges. The reasons for this can include a poor ICO campaign or other problems causing rejection of tokens on common exchange platforms. Let’s consider a few solutions to the abovementioned problems.

How to Choose a Successful ICO?

Unfortunately, a poor ICO campaign is one of the most common reasons why a token isn’t getting listed. Initial coin offerings are considered very risky, and few companies guarantee full refunds in case of failure.

What to Do?

To eliminate this risk, investors have to make sure that their campaign of interest has a strong business plan and is capable of fulfilling its promises.

To make sure an ICO campaign is strong and exceptional, it’s important to discover the requirements it should be meeting:

Technical Compliance

The idea behind the project should not only be innovative and promising, but also benefit directly from blockchain technology. All of the project’s data and information concerning its product and participants should be securely stored on the blockchain platform and remain accessible to all users.

Smart contracts should be used to ensure that all parties adhere to set requirements and comply with specific rules and conditions in order to process safe transactions.

The company should provide a product or service prototype or proof-of-concept to prove its efficiency and ensure its work model.

Strong Documentation

Before financing any ICO, an investor should carefully check the campaign’s documentation to ensure its validity and evaluate all investment options.

The white paper is the first document to evaluate. This is the most important document, and must be well-designed and clearly outline the project’s goals and intentions. Make sure the following aspects are stated:

• current problem and relevant issues
• the company’s solution
• product description and its advantages concerning problem solution
• work model and architecture
• description of blockchain technology implementation
• token economics details
• funds distribution
• roadmap
• team
• post-ICO plan: future plans, token allocation, product development details

As long as the white paper gives precise details and a solid product development description, one can consider the project’s roadmap. This must provide a well-structured development plan and realistic milestones. The roadmap is usually divided into three main periods: pre-ICO, ICO, and post-ICO. These periods should provide milestones for the following steps:

Pre-ICO

• the idea
• white-paper development
• product prototype presentation
• legal-issue settlement
• website launch
• mobile app launch
• social media management
• marketing campaign
• product development

ICO

• provide users with details on the crowdsale
• website security and protection

Post-ICO

• newsletter campaign
• raised funds distribution
• product development
• product promotion

Here’s a good example of a Bancor roadmap:

Team

The project’s team should:

• be reputable
• be experienced in the blockchain industry
• have a successful performance history
• be responsive in media channels

Token Requirements

The token should be useful within the project, and should be indispensable for conducting a range of functions:

• built-in governance
• a means of decision-making
• funds control
• the ability to conduct exchanges and trades

How to assess token utility? The investor should keep this in mind: if the token usage isn’t well-explained, or if it’s obscure, there may be certain weaknesses in the model. Here are some aspects to question when assessing token utility:

Considering that token economics is crucial to an ICO launch, the investor should pay great attention to these requirements in order to ensure that tokens will get listed on major exchanges.

For more details, read the ultimate ICO investor cheat sheet to choose the strongest project.

The ICO Campaign Is Successful, but Tokens Aren’t Listed on Exchanges

Sometimes, it happens that an ICO campaign has raised a large amount of funds, is compliant with its milestones, and has fulfilled its promises and realized the final product, but tokens still don’t get listed on exchanges.

What to Do?

In such cases, the investor should consider other means of token liquidation besides the common exchange platforms.

There exists a range of options for buying and selling tokens. The most convenient ones are:

P2P Transactions

According to this type of transaction, investors aren’t dependent on an exchange, and can trade their tokens without third-party involvement or central-authority control.

It is possible to find individuals interested in the tokens one is offering or selling in the OTC (over-the-counter) market. In this case, investors prepare a smart contract (to ensure that both parties’ obligations are complied with) and trade their tokens directly.

Another option is to process transactions directly between wallets. Some wallets have functions that enable direct transactions and trading. Thus, investors can use various blogs or forums (like Altcoin Marketplace) to find buyers or sellers and conduct their trades.

It is also possible to attend cryptocurrency meetups to find other investors interested in direct trade and conduct exchanges or P2P transactions in this context, as well.

Atomic swap technology is a great alternative to centralized exchanges, too. This technology enables investors to process their trading transactions P2P, without centralized interaction. The atomic swap process is trustless, and ensures that both parties comply with set conditions according to the smart contract. Atomic swaps are performed at high speed, and validate blockchain payment processes quickly and securely.

Liquidity Protocols

One more option for investors to trade their tokens besides exchanges is token liquidity protocols. Here are some examples for consideration:

• 0x Protocol: order-book operations, such as buying and selling requests, are performed in an off-chain manner and benefit from cost efficiency. This protocol provides features like decentralization, trust, and a lack of governmental regulation.
• QuickX Protocol: offers quick, secure cross-chain transactions between parties, providing scalability, a high level of liquidity, speed, and cost efficiency.

Token Liquidity Solution — The Bdaq Platform

This decentralized free-flow liquidity platform is designed to avoid common DEX pitfalls like slowness, and offers revolutionary solutions to token-holders.

Investors can place their sell/buy requests directly on the platform, regardless of whether or not the ICO has ended or been whitelisted. Bdaq is suitable for trading tokens in both cases, if the ICO has been successful even without the tokens getting listed. This proves that the Bdaq approach matches all investor needs.

In conclusion, it should be noted that investors must carefully research and evaluate their project of interest before investing in it. If a campaign proves to be strong and promising, with well-thought-out token economics, there won’t be any problems with listing procedures. However, if tokens don’t get listed due to certain circumstances, there are several options to choose from, like P2P transactions, liquidity protocols, and decentralized exchanges.